Since our previous analysis, gold has been moving upwards. The price tested the level of $1,241.43 in a low volume. According to the daily time frame, I found that the head and shoulders pattern (topping formation) is forming. I have placed Fibonacci retracement and found 38.2% at the price of $1,238.00 (successfully held). Watch for intraday selling opportunities on rallies. The first take profit level is set at the price of $1,217.00. The valid breakout in a high volume of $1,216.50 will confirm the head and shoulders formation.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,240.70
R2: 1,241.90
R3: 1,243.80
Support levels:
S1: 1,236.90
S2: 1,235.70
S3: 1,233.80
Trading recommendations for today: Be careful when buying and watch for potential selling opportunities.
